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Many traders are drawn to futures because of leverage. Leverage allows traders to commit a smaller amount of capital to control the value of a large asset. This means that smaller changes in the underlying price can translate into larger gains or losses. In futures trading, this leverage is made possible by trading on margin. Margin is the amount of funds required to enter a futures position, which is usually a fraction of the contractamp;#39;s total value. Margin for futures is different than margin for stocks. In stocks, you borrow against your assets like a loan. In futures, you put down a good faith deposit called the initial margin requirement. Itamp;#39;s important to note that gains or losses on futures positions could exceed the initial margin requirement. Understanding margin is essential for a futures trader, so letamp;#39;s look at an example. Letamp;#39;s say Trader A is bullish on the Samp;amp;P 500 and decides to take a long position on the E-Mini Samp;amp;P 500 in